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OK Zimbabwe Limited reported a 36% drop in sales volumes for the third quarter of 2024, citing harsh economic conditions, currency devaluation, and operational disruptions. The company’s trading update for the quarter, released on February 14, 2025, highlights the impact of local currency liquidity shortages and power outages on its business performance.
The devaluation of the Zimbabwean dollar (ZWG) in September 2024, part of an effort to stabilize exchange rates, increased the company’s US dollar-denominated obligations. Compounding the issue, daily stock availability plummeted to 50% of normal levels due to supply constraints and manufacturers’ preference for foreign currency payments. Suppliers also demanded shorter payment terms and prepayments, further straining OK Zimbabwe’s working capital.
Frequent power outages forced the company to rely on alternative energy sources, driving up operating costs. In response, OK Zimbabwe closed four underperforming branches in Harare’s Glen Norah, Kuwadzana 5, Chitungwiza Town Centre, and Manyika Street.
Despite these setbacks, OK Zimbabwe remains optimistic. The company recorded a 10% year-to-date volume growth and is working to restore stock levels through supplier partnerships, financial assistance, and alternative procurement models. Additionally, recent monetary policy adjustments, which introduced flexibility in foreign exchange regulations, have provided a glimmer of hope for the formal retail sector.
As the company navigates these turbulent times, it underscores the importance of a stable exchange rate system to drive economic recovery and support formal retailers. OK Zimbabwe’s path forward hinges on continued collaboration with policymakers and financial institutions to create a more predictable and sustainable trading environment.
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